Bitcoin Sees Strict Rule Proposals by the European Commission

In a proposal today, the European Commission – the executive arm of the European Union – sought stricter rules on the use of virtual currencies like bitcoin.
Citing reasons of terrorism and money laundering, the European Commission has proposed stricter rules for the use of virtual currencies, an official press release revealed today.
The changes will see digital currency exchanges and wallet providers fall under the purview of the Anti-Money Laundering Directive (AMLD). Such a move will seek to bring an end to the anonymity associated with digital currency transactions.
The proposed rules will also tighten regulatory oversight on prepaid cards. The Commission is proposing to ‘minimize the use of anonymous payments through prepaid cards.’ It aims to do so, by lowering the threshold for identification during prepaid card purchases from 250 to 150. Furthermore, it will also seek to widen the scope of verification requirements, potentially adding to KYC (Know Your Customer) procedures.
‘Today’s proposals with help national authorities to track down people who hide their finances in order to commit crimes such as terrorism,’ first vice-president of the European Commission, Frans Timmermans stated. ‘Member states will be able to get and share vital information about who really owns companies or trusts, who is dealing in online currencies, and who is using prepaid cards.’

This post was published at Crypto Coins News on 05/07/2016.